Voluntary Comp Rates Drop Again in South Carolina; Assigned Risk Multiplier to Rise

Workers’ compensation insurance rates for the voluntary market will drop next year in South Carolina, but the loss cost multiplier for the assigned risk sector will climb again, thanks to another year of excessive losses, the state Department of Insurance announced.

For industrial classifications in the residual market, the department this week ordered an increase in the loss cost multiplier, from 2.684 to 3.326, for 2022, department Director Ray Farmer said in a bulletin. The change is in keeping with the National Council on Compensation Insurance’s October letter that cited excessive losses for the assigned risk plan for the second straight year.

“I hereby conclude that corrective action is necessary to ensure that the assigned risk plan is self-funded and rates are maintained at an adequate level,” Farmer wrote.

The new multiplier should be applied to the voluntary market loss costs, starting Feb. 1. The minimum premium for assigned risks will drop, from $1,500 to $1,000, the department said.

For the voluntary market, the NCCI in October recommended a 9.8% average decrease in loss costs. The department approved that on Dec. 15 and announced it Tuesday. The effective date is Feb. 1 and all workers’ comp insurers have until Feb. 13 to submit a System for Electronic Rate and Form Filing, or SERFF filing, adopting the loss costs. The effective date should be no later than June 1, the DOI noted.

The South Carolina Workers’ Compensation Commission also announced changes to its medical services provider manual, which includes a new fee schedule analysis, summary of changes and anesthesia conversion factors.

The fee schedule analysis, done by FAIR Health and based on 2020 data from the NCCI, shows a neutral conversion factor. Most services will not see an increase from 2021 reimbursement levels. The analysis can be seen here.

Topics Trends Pricing Trends South Carolina